SNX, SYNNEX Corp.

SYNNEX Corporation (NYSE:SNX), a leading business process services company, announced financial results for the fiscal third quarter ended August 31, 2011.



“I am very pleased with our sales growth and significant margin expansion this past quarter. Our excellent results were driven by increased market share in our core commercial business, our continued focus and execution in key IT growth markets, and new client engagements in our services segment,” stated Kevin Murai, President and Chief Executive Officer. “Our investments in value-added services are gaining traction and continue to further differentiate us from our competitors.”

Fiscal 2011 Third Quarter Business Segment Highlights:

Distribution: Revenue from continuing operations was $2.54 billion, an increase of 17.9% over the prior fiscal year third quarter. The year ago third quarter included $77.4 million in revenue from the portion of the contract assembly business which was sold in the third fiscal quarter of 2010. The acquisition on December 1, 2010 of SYNNEX Infotec Corporation in Japan added $297.0 million to the fiscal 2011 third quarter revenue. Distribution income from continuing operations before non-operating items, income taxes and noncontrolling interest was $58.6 million, or 2.31% of distribution revenue compared with $47.9 million, or 2.23% in the prior fiscal year quarter.


Global Business Services (GBS): Revenue from continuing operations was $40.5 million, an increase of 30.7% over the prior fiscal year third quarter. The year ago third quarter included $4.8 million from NDS business which was sold on August 31, 2010. The revenue contribution from acquisitions made in late 2010 onward was $13.0 million in the fiscal third quarter. GBS income from continuing operations before non-operating items, income taxes and noncontrolling interest inclusive of a $4.1 million benefit from the credit adjustment to contingent M&A consideration was $7.9 million, or 19.58% of GBS revenue compared with $4.2 million, or 13.65% in the prior fiscal year quarter.

SYNNEX Corporation, a Fortune 500 corporation, is a leading business process services company, servicing resellers, retailers and original equipment manufacturers in multiple regions around the world. The Company provides services in IT distribution, supply chain management, contract assembly and business process outsourcing. Founded in 1980, SYNNEX employs over 10,000 full-time and part-time associates worldwide.

Additional information about SYNNEX may be found online at www.synnex.com.

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